Australia – Wool returns lifting up the skin market
Published: 11 Nov, 2020
The Australian skin market is reported to have been on a rollercoaster over the past few months, following the fortunes of the wool market and global health issues caused by Covid-19. Production levels are now back to normal and the majority of skins being produced are new season lambs. Early in the season, there was extremely limited demand with prices at historically low levels. Merinos also took a hit from the levels they had been trading at through July and August.
However, over the past 3-4 weeks, the wool market has seen some significant gains and demand for skins has followed.
In the hide trade, after a couple of weeks of dipping out of the market, some of the larger suppliers have published offer lists again this week. The initial feedback from tanners has been to counter these offers by US$2/hide. Suppliers are holding firm at the moment, but it is still early days in these latest rounds of negotiations. If the patterns from the U.S. are followed, then a stand on from the previous reported prices would seem the most likely outcome, but, watch this space. For further information click here.